The Ohio Hospital Association

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Monday, February 3, 2003
Tax Reform Unveiled
Gov. Bob Taft last week unveiled his tax reform proposal to address the $720 million hole in the state’s budget for this fiscal year, which ends June 30, in addition to the up to $4 billion deficit in the budget for the next two fiscal years. Taft’s plan for the next biennium, beginning July 1, urges sweeping state tax reform in which sales tax would be applied to a number of services that were previously untaxed including real estate, public utility and transportation. Sales tax has not yet been proposed for necessity services, such as medical and pharmaceutical services.

Also included in the plan are increases in so-called sin taxes for tobacco products and alcohol. The OHA Medicaid Task Force last Friday voted to make a motion to the OHA Board of Trustees to support the tobacco and alcohol tax increases, but has not taken a position on the other taxes. OHA will continue to analyze the tax package to identify any impact on providers. (Bridget Gargan, bridgetg@ohanet.org)

Hospitals Lead the Way
OHA wants to recognize Children’s Hospital, Columbus, and Children’s Hospital Medical Center of Akron for being honored in a ranking of the nation’s top pediatric facilities by Child magazine. The two children’s hospitals were ranked 13th and 21st respectively of the more than 150 pediatric hospitals in the U.S.

Last week OHA acknowledged Rainbow Babies and Children’s Hospital, Cleveland, and Children’s Medical Center, Dayton, for appearing in this ranking but neglected to mention the additional two hospitals. We apologize for this oversight and congratulate all four hospitals.

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(Editor’s note: The news clips are being password-protected on the OHA Web site. OHA members will be notified separately of the password. HEALTH e-NEWS Plus subscribers can still access news clips through the daily e-mail without a password.)


Tuesday, February 4, 2003
Med Mal Crisis Pervasive; Va. Insurer Closing
Medical malpractice liability insurance problems are not unique to Ohio. Eleven other states are also considered to be in crisis by the American Medical Association. Physicians in Florida, West Virginia, Mississippi, New York and Nevada have staged walkouts and doctors in New Jersey planned a boycott. Ohio, Georgia, Pennsylvania, and Oregon doctors in certain specialty practices are closing or changing their practices while Texas is facing doctor shortages and insurance companies have pulled out of the Washington malpractice market.

Now thrown in the mix is Virginia with the recent announcement that the state’s biggest medical malpractice insurer has been placed into receivership. Reciprocal of America, which primarily writes hospital professional liability and worker’s compensation insurance, was declared insolvent because of financial problems. Reciprocal adds to the list of insurers to close or withdraw from the market including St. Paul, PHICO, MIIX, Legion, Reliance and Frontier.

To help alleviate the situation in Ohio and address rising medical malpractice costs, OHA will develop and implement a statewide sponsored-deductible program for physicians and explore the creation of a provider-owned insurance company. (Rick Sites, ricks@ohanet.org)

Ohio General Assembly Appoints Committee Members
With the start of a new legislative session, OHA would like to note the appointment of members to those committees that make decisions on the bulk of Ohio’s health-related legislation.

In the Ohio House Finance and Appropriations Committee, Charles E. Calvert (R-Medina) will serve as chair and James M. Hoops (R-Napoleon) will serve as vice-chair. Gregory V. Jolivette (R-Hamilton) and John J. White (R-Kettering) were appointed as chair and vice-chair, respectively, in the House Health Committee and the House Insurance Committee will be chaired by Geoffrey C. Smith (R-Columbus) and vice-chaired by Jim Raussen (R-Cincinnati).

In the Ohio Senate, Lynn R. Wachtmann (R-Napoleon) will chair the Health, Human Services & Aging Committee with Jeff Jacobson (R-Brookville) serving as vice chair. In the Insurance, Commerce & Labor Committee, Scott Nein (R-Middletown) and Jeffry J. Armbruster (R-North Ridgeville) will serve as chair and vice-chair respectively and Bill Harris (R-Ashland) will chair the Ohio Senate Finance Committee with John A. Carey, Jr. (R-Wellston) serving as vice chair. (Bridget Gargan, bridgetg@ohanet.org)

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(Editor’s note: The news clips are being password-protected on the OHA Web site. OHA members will be notified separately of the password. HEALTH e-NEWS Plus subscribers can still access news clips through the daily e-mail without a password.)


Wednesday, February 5 , 2003
Bush Plans Sweeping Medicare, Medicaid Reform
President George W. Bush this week released his fiscal year 2004 budget proposal with massive reforms to the Medicare and Medicaid programs.

Bush’s proposal calls for a 10-year Medicare modernization plan to provide a drug benefit to beneficiaries and allow for more freedom in choosing a plan under Medicare. The proposed reform would also seek changes in the physician reimbursement formula. Though Medicare reform is supported by OHA, modernizing the system by reducing the Medicare Part A Trust Fund, which funds hospital services, is not. All three of the main reform components could come at the expense of hospitals. OHA will keep members apprised of the final details of the proposal, which will not be available until later this month.

Also proposed is a sweeping overhaul of the Medicaid program. The reform would purportedly give states more flexibility to determine benefits and eligibility for Medicaid beneficiaries. It would also allow states to alter Medicaid rules and regulations. Most daunting to providers is the proposed dismantling of the Disproportionate Share Hospital payment program (DSH), the primary source of support for safety net hospitals that serve Medicaid beneficiaries and the uninsured and underinsured, known in Ohio as the Hospital Care Assurance Program. OHA and the American Hospital Association are urging Congress to not only preserve DSH but to reverse scheduled reductions to Medicaid DSH. (Jonathan Archey, jonathana@ohanet.org)

DAILY NEWS CLIPS

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(Editor’s note: The news clips are being password-protected on the OHA Web site. OHA members will be notified separately of the password. HEALTH e-NEWS Plus subscribers can still access news clips through the daily e-mail without a password.)


Thursday, February 6, 2003
Budget Correction Bill on the Move
Legislation to correct the estimated $720 million state budget hole this fiscal year was introduced yesterday by Rep. Charles Calvert (R-Medina). Office of Budget and Management Director Tom Johnson highlighted the bill’s provisions during hearings in the House Finance and Appropriations Committee. The bill would increase the tax on cigarettes by $.45 per pack, bringing the Ohio tax on cigarettes to $1 per pack. The increase would bring in $159 million for the state assuming a March 1 effective date. HB 40 would also double alcohol taxes to bring in a total of $18.7 million. The bill is scheduled to be voted out of committee Tuesday. (Bridget Gargan, bridgetg@ohanet.org)

Working Wonders
OHA would like to highlight the exceptional collaborations and successes of Ohio’s hospitals as they continue efforts to attract and retain talented and dedicated employees.

EMH Regional Healthcare System, Lake Hospital System, Euclid Hospital with the Cleveland Clinic Health System and Parma Community General Hospital were all named in the 99 Best Places to Work in Northeast Ohio by the Employers Resource Council. Those honored as the NorthCoast 99 excel in compensation, benefits, training and education, diversity, community service, work/life, recruitment and retention and employee communication. Parma Community and EMH Regional are celebrating their second year on the list.

Associations, hospital systems, nursing education providers, and the Greater Columbus Chamber, of Commerce have joined forces to create the Columbus Healthcare Workforce Center (CHWC). This collaboration began with a supply and demand analysis of the local labor market in health care. After defining the current and projected health care workforce needs, CHWC generated community solutions to recruit, retain, and develop talented health care professionals in the Columbus area. Columbus hospitals Children’s Hospital, Mount Carmel, OhioHealth, and OSU Medical Center are among the participants in this effort.

For more information on these and other hospitals’ best practices, visit OHA’s Workforce Forum at www.ohanet.org/workforce/. Send your hospital’s best practices to Jean Scholz at jeans@ohanet.org or 614.221.7614.

Double-Check Hospital Billing Seminar Dates
If you are planning to attend OHA’s Annual Seminar on the Management of Medicaid Accounts Receivables, make sure you have the correct dates. The dates for the joint OHA, Ohio Department of Job and Family Services (ODJFS) program have been updated since they were initially posted on the ODJFS Web site. ODJFS is in the process of correcting and reissuing the notice. The correct dates are: March 11, Blue Ash; March 14, Columbus; March 17, Perrysburg; and March 24, Strongsville. More information is available from the OHA Center for Education online at www.ohanet.org/education/education_programs.asp.

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(Editor’s note: StateHealthClips.com has gone to a subscription service. Please note that the link to access clips will change daily. If you visit www.statehealthclips.com, you will be required to enter a subscriber password. No password is required for the link published in HEALTH e-NEWS Plus.)


Friday, February 7, 2003
Medicaid Takes Hit in Proposed State Budget
The state budget released by Gov. Bob Taft this week proposes reductions in Medicaid eligibility, covered services and reimbursement. In an effort to contain Medicaid growth, the proposed budget will reduce the eligibility of parents from 100 percent of poverty to 70-90 percent based on family size and dental, vision, podiatric, chiropractic and psychological services for adults will be eliminated. Additionally, reimbursement rates paid to providers including hospitals and nursing homes will be frozen for a period of 24 months. Under these provisions, approximately 30,000 parents will completely lose Medicaid coverage and 800,000 will lose access to some services. Medicaid spending in Ohio will still increase by half a billion dollars in the next two years despite these reductions because of rising caseloads and increasing pharmaceutical costs - not because of increased hospital payments.

Freezes in reimbursement rates present a difficult situation for hospitals that rely on increases to cover a growing uninsured population and other increasing health care costs such as pharmaceuticals and malpractice insurance. For information on how to reach your elected representatives about the proposed freezes in reimbursement, please contact Bridget Gargan at bridgetg@ohanet.org.

Smallpox Vaccination of Military Underway
Military personnel in Ohio and across the country this week began receiving vaccinations for smallpox as part of President George W. Bush’s national smallpox vaccination plan. Under the plan, certain military personnel who are or may be deployed in high threat areas are being vaccinated.

Health care providers should be aware that some military personnel, specifically reservists, will return to their communities after being vaccinated. Providers should be prepared to question individuals about smallpox vaccine or smallpox vaccine in a family member when evaluating a rash or illness with characteristics similar to smallpox.

The Department of Defense reports that three percent of vaccinated people nationwide have taken sick leave for an average leave of five days. Only two cases have been reported as noteworthy. Both of those individuals are in good condition at this time, according to the department.

Vaccinations for public health officials and hospital personnel are expected to begin later this month in Ohio. The Ohio Department of Health has ordered 4,000 doses of the vaccine for 60 hospitals across the state. (Carol Jacobson, carolj@ohanet.org)

DAILY NEWS CLIPS

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(Editor’s note: The news clips are being password-protected on the OHA Web site. OHA members will be notified separately of the password. HEALTH e-NEWS Plus subscribers can still access news clips through the daily e-mail without a password.)